One of the major hurdles to the growth of commerce over computer networks such as the Internet is the difficulty in obtaining payment for a transaction occurring over the network. Users of the Internet are in the main reluctant to provide their credit card numbers over the Internet, generally because of a concern that the credit card number may be misappropriated and used by unauthorised persons, such as network “hackers”. Even if the security risk is not as great as feared, the perception that the security risk exists is great and is effective in discouraging Internet commerce.
There is therefore a need for a secure system for enabling computer network transactions, particularly for wide area networks, such as the Internet, in order to facilitate network commerce. Attempts have been made to provide security for transactions over computer networks such as the Internet. These include complex encryption systems, aimed at blocking access by hackers to secure information. The problem with these systems is three-fold. Firstly, they are complex and can be difficult to implement. Secondly, no matter how good the encryption system, it is likely that at some time a hacker will find a way to break it. Thirdly, they give possession of credit card numbers to sellers, who may misuse them.
Another system involves a buyer entrusting their credit details to a “go-between” broker who acts for them in handling transactions without revealing to the sellers their credit card numbers. A problem with these systems is that brokers can only trade with a limited number of merchants they can trust and who are prepared to operate in a confined syndication with them. In effect, this sets up monopolistic enclaves with which buyers have to deal whether they like it or not.